The Guideline Premium Test (GPT) is one of two statutory tests under 7702 to define a contract as life insurance. GPT limits cumulative premiums (guideline single and level premiums) relative to the death benefit and imposes a corridor to ensure sufficient insurance risk. Alternatively, the Cash Value Accumulation Test (CVAT) focuses on the relationship between cash value and death benefit.Carriers select a test at issue; it drives funding flexibility, corridor requirements, and MEC dynamics.

Carriers choose GPT or CVAT at issue. Advisors explain how the choice affects maximum funding,corridor, and MEC considerations and how it interacts with planned premium patterns.